IT one person Contract to Managed Service Contract

[Lance]

From what you've said I wouldn't bother. I'd be speaking to a contract lawyer just to get their opinion as to whether the handcuff will stick or not first.

This ^^^^^^^

Don't tell the agent diddly squat.
a) it's only their business if you are intending to breach the contract you have with them, and you're trying to avoid that
b) they will cause trouble and not help in the slightest
It's none of their business.

Get the legal advice, and think about starting a new LTD with no ties to the agency. If you're putting other staff onsite then you are a competitor of the agency so having no history with them would be helpful.
The only lever the agency then have is against you personally and if you are setting up a genuine business then they would struggle to make it stick.

[northernladuk]

I probably wouldn't even bother changing the company unless there is a good business reason. Then can still come after you as it's a sham arrangement. It's called piercing the corporate veil. It should stop people like damp courses offering guarantee and then folding the company to get away from the obligation. It's just too expensive and complicated for your average bod to chase.

[NoviceContractor]

This ^^^^^^^
Get the legal advice, and think about starting a new LTD with no ties to the agency. If you're putting other staff onsite then you are a competitor of the agency so having no history with them would be helpful.
The only lever the agency then have is against you personally and if you are setting up a genuine business then they would struggle to make it stick.

I have spoken to IPSE Legal team and they are of the opinion that I can not work with the client directly for this new arrangement too until the 6 months are passed (as per the clause from my current contract).

[northernladuk]

I have spoken to IPSE Legal team and they are of the opinion that I can not work with the client directly for this new arrangement too until the 6 months are passed (as per the clause from my current contract).

Interesting. I'm surprised but they will have more detail that doesn't contradict and they are experts so guess that's that.

[northernladyuk]

Hi All,

I am working for a client for last 5 years via an agency working through my LTD company on a daily rate. My current contract expired 2 weeks back. I have now moved to managed service business and have few employees in my company. I plan to engage with my last client for work which is different to what I have been doing and in a different contract. It will be managed service contract and my company will serve the client on adhoc basis - as and when needed. Since it is managed service contract so I need to sign the contract T&C directly with the client and I can not have any agency in between. I will be bidding for each work separately and the billing to the client will vary from one piece to another.

My contract that expired last week prevents me or my LTD company for working directly with my client for 6 months. How do I come out of this clause to have contract directly with client for managed services?

Really appreciate any help/ guidance I can get on the forum.

Thanks.

I have spoken to IPSE Legal team and they are of the opinion that I can not work with the client directly for this new arrangement too until the 6 months are passed (as per the clause from my current contract).

I know the old man has mentioned corporate veil, but did you check with IPSE legal team whether you can set up a new company to contract direct?

[Lance]

I have spoken to IPSE Legal team and they are of the opinion that I can not work with the client directly for this new arrangement too until the 6 months are passed (as per the clause from my current contract).

I suggest you get a 2nd opinion from a commercial firm. Nothing against IPSE but they're quite specialist and also risk-averse as you have a form of insurance with them.

[northernladyuk]

I suggest you get a 2nd opinion from a commercial firm. Nothing against IPSE but they're quite specialist and also risk-averse as you have a form of insurance with them.

Agreed. It's like accountants who give you cautious advice because they don't want the liability.

I really would look into keeping your current Ltd open for contracting and opening a new Ltd for the managed service contract.

[SueEllen]

I suggest you get a 2nd opinion from a commercial firm. Nothing against IPSE but they're quite specialist and also risk-averse as you have a form of insurance with them.

Agreed.

IPSE can only give you generic advice. A commercial firm can read your contract thoroughly and give you specific advice.

[NoviceContractor]

Agreed.

IPSE can only give you generic advice. A commercial firm can read your contract thoroughly and give you specific advice.

Any recommendation?